Chalice announces on-market share buyback

PERTH, Western Australia, March 3, 2014 /CNW/ - Chalice Gold Mines Limited (ASX: CHN) (TSX: CXN) advises that, subject to approval of the Toronto Stock Exchange, it intends to undertake an on-market share buyback of up to 25,073,088* ordinary shares as part of a capital management plan over the next 12 months.

The Board of Chalice is committed to actively managing the Company's capital and believes that the buyback provides the opportunity to repurchase shares at attractive valuations and consolidate the Company's capital base for the benefit of shareholders.

The Board will continue to assess the merits of this capital management initiative as market conditions evolve and will keep the market informed of the buyback's progress in accordance with ASX listing rules.

The earliest date the buyback will commence is Wednesday, March 19, 2014. Chalice will appoint Argonaut Securities to act on behalf of the Company in relation to the share buyback process.

The on-market buyback is not being offered or executed through the facilities of the Toronto Stock Exchange. Residents of Canada who wish to participate should contact Mr Richard Hacker, Company Secretary by email at [email protected]. The on-the-market buy-back is proceeding pursuant to the foreign issuer bid exemption found in applicable Canadian securities laws.

*There is no guarantee Chalice will repurchase the full 25,073,088 shares and the Company reserves the right to suspend or terminate the share buyback program at any time and to buyback less than 25,073,088 shares.

BILL BENT
Managing Director
Chalice Gold Mines Limited
March 3, 2014

Forward Looking Statements

This document may contain forward-looking information within the meaning of Canadian securities legislation and forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements").  These forward-looking statements are made as of the date of this document and Chalice Gold Mines Limited (the Company) does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law or regulation.

Forward-looking statements relate to future events or future performance and reflect Company management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources, the actual number of shares to be repurchased pursuant to the proposed share buyback plan, the realisation of mineral reserve estimates, the likelihood of exploration success, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage.

In certain cases, forward-looking statements can be identified by the use of words such as plans, expects or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or variations of such words and phrases or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved or the negative of these terms or comparable terminology.  By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.  Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry, as well as those factors detailed from time to time in the Company's interim and annual financial statements, all of which are filed and available for review on SEDAR at sedar.com.  Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.  There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward-looking statements.

 

SOURCE: Chalice Gold Mines Limited

For further information, please contact: 

Bill Bent, Managing Director
Chalice Gold Mines Limited
Telephone (W): [phone]

Tim Goyder, Executive Chairman
Chalice Gold Mines Limited
Telephone (W): [phone]

For media inquiries, please contact: 

Nicholas Read

Read Corporate
Telephone: [phone]